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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 21.00 | ACUITE BB | Downgraded | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 21.00 | - | - |
| Rating Rationale |
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Acuité has downgraded the long-term rating to ‘ACUITE BB’ (read as ACUITE double B) from ‘ACUITE BB+’ (read as ACUITE double B Plus) on the Rs.21 crore bank facilities of Sriya Farm (SF). This rating is now an indicative rating and downgraded on account of information risk.
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| About the Company |
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Sriya Farm (SF) is a Bangalore based firm established in 2003. The firm is promoted by Dr. Suresh Babu and Dr. Sharada Ramamurthy. The firm is engaged in poultry integration business. It operates majorly in Karnataka (4 districts) and Andhra Pradesh (2 districts).
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| About the Group |
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Sriya Farms and Feeds Private Limited (SFFPL) is a Bangalore based company, incorporated in 2015. The company is promoted by Dr. Suresh Babu and Dr. Sharada Ramamurthy. The company is engaged in the manufacturing and selling of poultry feed.
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| Unsupported Rating |
| None |
| Non-cooperation by the issuer/borrower |
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Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer/borrower failed to submit such information before the due date. Acuité believes that information risk is a critical component in such ratings, and non cooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.
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| Limitation regarding information availability |
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The rating is based on information available from sources other than the issuer / borrower (in the absence of information provided by the issuer / borrower). Acuité endeavored to gather information about the entity / industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.
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| Rating Sensitivities |
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No information provided by the issuer / available for Acuite to comment upon.
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| All Covenants |
| Not applicable |
| Liquidity Position |
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No information provided by the issuer / available for Acuite to comment upon.
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| Outlook |
| Not applicable |
| Other Factors affecting Rating |
| None |
| Key Financials: |
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The rated entity has not shared the latest financial statements despite repeated requests.
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| Status of non-cooperation with previous CRA |
| Not applicable |
| Any other information |
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Acuite is yet to receive the latest No Default Statement from the rated entity despite repeated requests and followups.
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| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm |
| Note on Complexity Levels of the Rated Instrument |
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In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in
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